Following the election of South Korean President Lee Myung-bak in December, Chinese Nationalist Party (KMT) presidential candidate Ma Ying-jeou (馬英九) pointed to South Korea as an illustration of how the nation should mold its future to ensure a prosperous economy.
Ma blamed the Democratic Progressive Party government for the sluggish growth in average income and GDP, while seeking to compare himself to Lee. He mimicked Lee’s “7-4-7” policy by proposing a “6-3-3” economic policy, promising to achieve 6 percent economic growth, 3 percent unemployment and 3 percent inflation.
To bolster economic growth, Ma proposed the “i-Taiwan” 12 infrastructure projects, which he said would jump-start the economy by pouring NT$2.65 trillion (US$87.3 billion) in government funds into domestic development over an eight-year period.
In addition to repeatedly citing South Korea as his model for Taiwan, Ma told voters that the government should not only focus on achieving a healthier economy, but also on improving the living standard and wellbeing of the average person. The KMT aired a TV commercial featuring a South Korean businessman insulting Taiwan’s economy by calling it weak in comparison with South Korea’s and claiming that Ma was the cure to Taiwan’s economic woes.
The campaign to portray Ma as another Lee was highly successful. But since being elected, Ma has shown less interest in comparing himself to South Korea’s president and discussing his 6-3-3 policy to improve people’s lives. His administration is now facing the reality of soaring oil and commodity prices that Ma’s campaign team knew all along would be a factor even as it painted a very different picture to the public.
Now his administration has announced a series of hikes in commodities, but without complementary measures to attenuate the impact on the average household.
In a symbolic gesture of his concern, Lee pledged in March to donate his entire salary during his five-year term to help those saddled with poverty in his country. More significantly, Lee’s government has since announced a plan to alleviate the financial burden of rising oil and food prices with tax rebates that would benefit some 13.8 million South Koreans. In addition, the South Korean government is planning to pay out 10 trillion won (US$9.7 billion) to cover the heating bills of 860,000 low-income families.
Seoul is attempting to mitigate the problems faced by underprivileged families, while seeking to maintain consumption levels with tax rebates. South Korea is not the only country seeking ways to help vulnerable people as commodity prices look set to continue increasing. In Asia, Singapore is offering US$1.32 billion in funds to address the matter, while Hong Kong is considering similar measures.
Ma and his administration must follow suit if they hope to attain the goals they pledged to pursue and curb the impact of price hikes on the public. Ma is fond of saying that a compassionate and responsible government feels the pain of its people. His words will mean little if he does not act now to show his concern for those hit hardest by rising commodity and energy prices.
Recently, the Chinese Nationalist Party (KMT) and the Taiwan People’s Party (TPP) hastily pushed amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) through the Legislative Yuan, sparking widespread public concern. The legislative process was marked by opaque decisionmaking and expedited proceedings, raising alarms about its potential impact on the economy, national defense, and international standing. Those amendments prioritize short-term political gains at the expense of long-term national security and development. The amendments mandate that the central government transfer about NT$375.3 billion (US$11.47 billion) annually to local governments. While ostensibly aimed at enhancing local development, the lack
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